Would Brussels Tax Retail Government Securities? We Show What Investors Can Prepare For
5 Articles
5 Articles
The European Commission has launched infringement proceedings against Hungary due to the tax advantage of Hungarian retail government securities over bonds from other countries. At stake is one of the most important attractions of the government securities market: namely, that investors enjoy full tax exemption for most Hungarian government securities. With an investment of 10 million forints, up to 154 thousand forints per year may depend on wh…
The European Commission has launched infringement proceedings against Hungary because the interest on domestic retail government securities is tax-free, while the interest on government securities from other EU countries is subject to full interest tax. We calculated how much you could lose by abolishing the interest exemption and looked at what the state could do. What is Brussels objecting to? On October 1, the European Commission sent a lette…
Due to the EU procedure, many investors may wonder whether the rules for retail government securities may change in the coming years.
The European Commission objects to the tax exemption of Hungarian government securities. I looked into what it is actually asking for and what protects your existing securities.
The European Commission believes that the Hungarian government bond tax system may be discriminatory and has sent a formal letter of formal notice to Budapest. If the Hungarian response does not convince Brussels, the case could move to the next stage, and ultimately, it could be referred to the Court of Justice of the European Union.
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